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• Publié par: ejymyram
• Nombre de lectures: 132
• Langue: Français

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Budget Message

May 18, 2009

Honorable Chairman and Members of the Board of Commissioners

:

Today’s world differs dramatically from the one we lived in a year ago.

Last year’s budget message focused on managing the high rate of growth and

development in the county and moderating its associated burden on the tax rate and on

our quality of life.

This year it will focus on the impacts of revenue shortfalls resulting from the global

recession, opportunities realized and opportunities awaiting.

Impact of Reduced Revenues in FY 2010

The proposed general fund budget for FY 2010 totals $194.5 million, retaining the

property tax rate of 63 cents but with revenue projections down by nearly $12 million

from the budget adopted last June (The proposed FY 2010 general fund budget is $9.3

million less than the current amended budget, which was cut by $6.1 million in February

2009 to reflect reduced revenues in FY 2009).

Consistent with the Board’s prudent and conservative fiscal policies, appropriation of

fund balance is not recommended to fill this funding gap. Instead, proposed

expenditures are reduced accordingly. These expenditure reductions are targeted to

minimize detrimental impacts on service delivery and to avoid layoffs.

Reductions in spending for FY 2010 are proposed nearly across the board, except

where prevented by contractual or statutory obligations, and for public school operations

(current expense), where spending increases over 2.5%. Total general fund spending is

reduced in FY 2010 by about 4.6% compared to the amended FY 2009 budget, or by

about 5.8% compared to the FY 2009 budget originally adopted last June.

General descriptions of the reductions in revenues and expenditures can be found in the

Budget Summary, beginning on page 31.

Impact of Reduced Revenues in Subsequent Years

Conservative projections suggest general fund revenues will not reach the original FY

2009 forecast until FY 2012. Obviously, a reordering of the county’s five year financial

plan is required.

If the projections hold true, it will not be possible to avoid a property tax rate increase in

FY 2011 without an unfavorable impact on service delivery. Further, the amount of the

tax increase will be higher if current plans are realized to finance the construction of four

new schools and a high school classroom addition in June, 2009.

Two alternative five year financial plans are presented for the Board’s consideration,

both with emphasis placed on minimizing property tax rate increases while the

recession drags on. Continuation of the operational reductions proposed for FY 2010

left school construction financing and other capital projects as the only significant and

controllable variables affecting the tax rate.

One alternative (option A, page 66) calls for financing the construction of two middle

schools and a high school classroom addition in June 2009 and financing the

construction of two elementary schools in June, 2012. This financing plan calls for

capitalizing interest payments for 2.5 years and using cash from the state’s school

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